Why export revival hinges on digital trade
Pakistan is one of the least open economies in the world. Its lack of participation in international trading activities has resulted in volatility and economic instability, keeping the economy hostage to regular balance-of-payments crises and mounting debt-related challenges.
Exports of goods from Pakistan have consistently remained below 11% of GDP. This lack of exports stifles the inflow of much-needed dollars, creating pressure on foreign exchange reserves. Furthermore, policies involving exchange rate management and restrictions on the flow of dollars impede the ability of businesses to participate in international trading activities.
One of the challenges often highlighted by businesses seeking to increase their export footprint is the lack of digitalisation in international trading practices, particularly when it comes to fulfilling financial obligations and building business-to-business relationships necessary to expand exports. The digitalisation of procedures, processes and activities involving international trade will become even more crucial with the advent of 5G technologies in Pakistan, creating new frontiers of possibility for traders. With the spectrum auction likely to take place next month, it is imperative to ensure that international traders receive meaningful benefits from these new avenues.
One key development in the digitalisation of trade procedures and processes is the Pakistan Single Window (PSW). Pakistan's score in the UN Global Survey on Digital and Sustainable Trade Facilitation increased from 55.9% in 2021 to 74.2% in 2025, with the most significant improvement in the category of "paperless trade". PSW has integrated more than 70 government agencies into a single platform, replacing the need for manual "no objection certificates" with digital data exchange.
Electronic import forms and the Electronic Form-E have been replaced by real-time data exchanges between participating banks and the PSW system, as information on traders, trading documents and financial instruments can now be shared electronically rather than manually. PSW also incorporates API-based digital handshakes that allow integration across borders and has improved transparency in international trading procedures and processes.
Although PSW has made significant strides in digitalising key customs procedures and bringing several government agencies dealing with internationalised firms onto its platform, there remains a growing need to ensure exporters have access to a fully digital environment that eliminates reliance on manual documentation.
It is imperative to enhance B2B cross-border payments, provide a comprehensive digital freight booking system, and develop financial platforms involving loans or factoring and stronger connectivity with fintech platforms to increase overall effectiveness. An enhanced digital marketplace, integrated with the single window and designed to connect traders with overseas partners, would allow exporters not only to sell products but also to establish buyer credibility, offering immense benefits to traders.
When digital activities break down due to the persistence of manual procedures that create delays and lags, they form a "digital island" in a sea of analogue processes. It is therefore essential to ensure that digitalisation genuinely benefits traders by eliminating all manual procedures that inhibit growth. The use of APIs that plug into digital platforms can accelerate digitalisation, expanding this island and ensuring international traders benefit from a wider array of services.
5G technologies will revolutionise industries by enhancing technological capabilities to improve manufacturing and supply chain efficiencies. They are designed to strengthen industrial control systems and enable industries to digitalise physical operations, reducing delays caused by manual processes. Enhanced broadband communication, reduced latency and higher connection density will enable the development of smart ports, smart cities, smart industries and smart agriculture. The benefits will extend across all sectors as they become digitally connected, with international trade standing to gain significantly.
The upcoming auction will include six frequency bands that can substantially improve port operations and cargo handling. Karachi Port and Port Qasim, for instance, can further reduce reliance on manual operations and human intervention. Automated cranes and remote inspections, enabled by advanced 5G capabilities, can eliminate delays for exporters and facilitate digital customs clearance with minimal human interaction. Improved mobile communications will also allow cargo and freight to be tracked more effectively, enabling traders to prepare in advance for arrivals, reducing time delays and costs.
Advanced ports around the world already deploy 5G technologies to improve efficiency and reduce congestion. Cranes in ports across China, Rotterdam and elsewhere are operated remotely with near-zero accidents. Data systems used in digitally operated ports can be integrated with single window platforms to provide real-time information to traders and government agencies. International best practices also include the standardisation of digital documents, as seen in Singapore, allowing interoperability across compliant global systems.
Gateway layers that respect data sovereignty, such as those used across Asean countries, enable cross-border sharing of trade documents. Networked trading platforms that allow private-sector applications to be hosted within government trade portals can further create a one-stop shop for international traders.
There are numerous examples of how digital trading platforms can evolve into game-changing networks for international traders, ensuring minimal costs and avoiding delays in documentation while providing real-time visibility over the movement of goods across borders and within domestic markets. If the government is to achieve its target of $60 billion in exports over the next four years, it is imperative that Pakistani exporters are fully empowered to take advantage of the opportunities offered by comprehensive digitalisation.
THE WRITER IS AN ASSISTANT PROFESSOR OF ECONOMICS AND A RESEARCH FELLOW AT CBER, INSTITUTE OF BUSINESS ADMINISTRATION, KARACHI. HE ALSO CHAIRS THE ECONOMIC ADVISORY GROUP